Banking – UK Finance Labour Market Trends Report, September 2025
Banking vacancies climb 11% with IT and operations driving growth
Key findings include:
- Banking vacancies forecast to rise 11% nationally, with London leading on a 15% increase compared to 2024
- AI-focused roles drive demand, with IT Management up 43% and Operations up 34%
- Regional hiring diverges: Glasgow up 50%, Belfast up 40%, while Edinburgh falls 7% and North East drops 29%
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London drives banking rebound as hiring recovers nationwide
The UK’s banking sector has entered a period of renewed hiring, marking a turnaround after two subdued years. Confidence is returning across the industry, with vacancy volumes forecast to rise 11% Year on Year nationally. London remains at the forefront, set to post a 15% increase, reinforcing its role as the country’s dominant financial centre.
Hiring peaked in July before easing in August, in line with seasonal trends. However, the sharper volatility this year may also reflect shifting recruitment cycles as automation reshapes workforce needs. Across the country, regional demand has remained more stable, offering evidence of a broader, if uneven, recovery.
Banks favour digital, operational, and leadership skills in 2025
Technology and operations are now central to recruitment strategies. IT Management has become the fastest-growing discipline, with vacancies rising 43%. Demand for development and engineering talent is also up, increasing 26% YoY as institutions focus on AI infrastructure and digital integration.
Operations hiring is accelerating, with a 34% rise in roles managing AI-enabled processes. In contrast, growth in Risk & Compliance remains flat at 1% as automation takes over more regulatory tasks.
Commercial Banking continues to decline, contracting 10% amid ongoing branch closures and shifting consumer behaviour. Accounting specialisms are diverging: Financial Accounting and Audit are gaining ground, while Tax roles and financial advisory positions are becoming less prevalent.
Regional recovery highlights growing divide in hiring momentum
London is extending its lead in banking recruitment, with its national share nearing 50% for the first time since the pandemic. The capital’s role in major transformation projects and AI investment continues to draw in headcount.
Scotland is seeing a mixed picture. Overall hiring is projected to rise 20%, led by Glasgow, where volumes have surged 50%. Meanwhile, Edinburgh saw a decline of 7%, underscoring varied regional performance.
Northern Ireland stands out, with vacancy growth of 40%, mostly concentrated in Belfast. By contrast, the North East recorded the sharpest decline at 29%, while other regions posted modest single-digit improvements.
Mark Astbury, Director, Morgan McKinley commented:
“After a subdued two years, the UK banking sector is now firmly back in growth mode. What we are seeing in 2025 goes beyond recovery – banks are investing in AI-first infrastructures, which is driving demand for IT management, engineering and operations talent. London remains the powerhouse of hiring, but the rapid growth of hubs like Belfast and Glasgow shows how technology and operations talent is reshaping the industry across the UK. This rebound is not simply about recovery – it is about reinvention, resilience and long-term competitiveness.”
Top firms split between expansion and consolidation
Hiring strategies among leading banks and financial firms are diverging. JPMorgan is increasing recruitment by 25%, targeting roles in AI, risk and data-led transformation. Barclays is also on the rise, reporting a 44% boost, helped by a focus on corporate banking and graduate programmes.
Visa continues to expand, with hiring up 367%, reflecting growth in digital payments and security. Deutsche Bank leads the pack with a 52% surge in vacancies linked to machine learning and infrastructure roles.
In contrast, Santander is scaling back sharply, cutting roles by 40% as part of a major restructuring. Evelyn Partners is also retrenching, with volumes falling 44% following divestments and a shift in strategic direction.
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